Samsung Electronics expects profits for the three months to June 2024 to grow 15 times compared with the same period last year.
The boom in artificial intelligence (AI) has pushed up the price of advanced chips, boosting the company’s forecast for the second quarter.
The South Korean tech giant is the world’s largest maker of memory chips, smartphones and televisions.
The news pushed Samsung’s shares up more than 2% in early trading in Seoul.
The company also The report said the increase was more than 10 times Profit for the first three months of this year.
The company said profit for the current quarter was expected to rise to 1.04 trillion won ($7.54 billion; 5.9 billion pounds) from 670 billion won last year.
This beat analysts’ forecast of 8.8 million won, according to LSEG SmartEstimate.
“Currently, we are seeing a surge in demand for artificial intelligence chips in data centers and smartphones,” said Marc Einstein, principal analyst at ITR Corporation, a research and consulting firm in Tokyo.
Optimism about artificial intelligence was one of the reasons for the broader market rally last year, with the S&P 500 and the Nasdaq hitting new highs on Wednesday.
Chip manufacturing giant Nvidia’s market capitalization soared to more than $3 trillion last month, once firmly ranking first among the world’s most valuable companies.
Einstein added: “The boom in artificial intelligence has greatly boosted Nvidia’s development, while also driving profits for Samsung and the entire industry.”
Samsung Electronics is the flagship division of South Korea’s Samsung Group.
The tech company faces a possible three-day strike next week, which is expected to begin on Monday. Workers unions are demanding a more transparent bonus and leave system.
